Economic and policy experts have raised strong objections to the Federal Government’s suspension of the proposed 15 per cent import duty on petroleum products, warning that the move could derail Nigeria’s march toward energy security and industrial development.
The Centre for the Promotion of Private Enterprise (CPPE) described the decision as a major policy setback with far-reaching implications.
CPPE CEO, Dr. Muda Yusuf, in a new policy brief, cautioned that the suspension undermines Nigeria’s push for energy independence and jeopardises billions of dollars already committed to local refining.
He said the duty was designed to protect emerging private refineries, promote backward integration, support industrialisation, conserve forex and ensure fair competition for domestic producers.
According to Yusuf, refineries such as Dangote and several modular operators invested heavily on the assurance of policy consistency.
Suspending the duty now, he warned, exposes them to unfair competition from importers who operate under easier global conditions, while local refiners still battle high energy costs, logistics inefficiencies, capital constraints and security risks.
He stressed that returning to heavy fuel importation puts Nigeria at risk of renewed vulnerability to global price shocks, geopolitical disruptions, and supply instability—factors that previously crippled public refineries and fueled unsustainable subsidy regimes.
Partners for National Economic Progress (PANEP) also faulted the suspension, insisting that it undermines the vision of the Petroleum Industry Act.
The group said Nigeria’s refining capacity is adequate, adding that the Dangote Refinery alone can meet national demand and maintain 90-day strategic reserves.
PANEP accused petroleum importers of resisting reforms that threaten entrenched interests within the supply chain.